Davies shortlists Heathrow and Gatwick expansion

Howard Davies’ Airport Commission has suggested at least one new runway will be needed at Heathrow or Gatwick to help ease air capacity issues in the south east.

The commission’s interim report, which identified a need for hub and non-hub capacity, has shortlisted a second runway at Gatwick as an option, or either a third runway or an extension of the north runway at Heathrow.

While many will argue that action needs to be taken now, Davies’ report said the new runway should be in place by 2030, with there likely to be demand for a second additional runway to be operating by 2050.

Boris Johnson’s Thames Estuary airport was not shortlisted due to “too many uncertainties and challenges…at this stage” but has not been ruled out completely, with the commission to make a more detailed study and review next year.

Expansion plans at Birmingham and Stansted have not been shortlisted but could be an option for the second extra runway.

As well as the additional runways the report outlined how the existing structure could help including an ‘optimisation strategy’ to help airports run better; improving Gatwick Airport station; developing Gatwick’s transport links; an improved rail link from London to Stansted; work on southern rail access to Heathrow and ticketing facilities.

“The UK enjoys excellent connectivity today. The capacity challenge is not yet critical but it will become so if no action is taken soon and our analysis clearly supports the provision of one net additional runway by 2030. In the meantime we encourage the government to act on our recommendations to make the best of our existing capacity,” said Davies.

“The Commission will now focus on the challenge of appraising the three options, further assessing the case for a new airport in the Thames Estuary, and delivering a robust final recommendation to government in summer 2015,” he added.

A public consultation will take place in  autumn 2014 following the appraisals.

Reaction

Naturally both Heathrow and Gatwick have welcomed Davies’ interim report.

The chief executive of Stansted’s owners MAG Charlie Cornish said: “Stansted welcomes the Commission’s support for measures to increase capacity at the airport in the short term, including improving rail links between the airport and central London.  We also support the Commission’s finding that Stansted is one of the viable options for a runway beyond 2030. As London continues to grow to the East and high-tech industries along the London to Cambridge corridor grow Britain’s economy, Stansted has a critical role to play in supporting the country’s economic growth.”

Dale Keller, chief executive of BAR UK said airlines supported the optimisation and wants to work with the government to work on fewer delays for customers.

“Despite the inevitable challenges and disagreement that will follow, the vast majority of airlines believe that expanding Heathrow is now the only sensible way forward for the UK. Sir Howard and his team have correctly identified that other proposals would cost billions in public funding and could create mass relocations and associated social upheaval and economic pain, or not deliver on the core objectives,” said Keller. “Airlines are also highly supportive of the inclusion of an optimisation strategy, with Sir Howard acknowledging that this is not only an issue of airlines adding more flights to meet increasing demand, but also about improving resilience and the customer experience.”

Virgin Atlantic’s chief executive Craig Kreeger backed the Heathrow expansion despite having flights from both the London airports: “Although Gatwick is a very important airport to us, additional runway capacity there does not address the UK’s chronic hub capacity shortage. The passenger mix at London’s hub will always include point-to-point and connecting, business and leisure passengers. Attempting to substitute point-to-point capacity for capacity at the hub may be more politically expedient but it is not commercially viable.

“Commissions and consultations have come and gone, and political wrangling has failed to translate into action. It is vital that when Davies reports the final recommendations, a firm and final decision is taken to increase hub capacity and the UK’s competitiveness,” he added.